January 15, 2021｜Written by GreenSoft Technology, Inc.
New CAHRAs List of High-Risk Smelters Applied for EU Conflict Minerals Services
The European Commission has expanded the list of regions that fall under the scope of the European Union Conflict Minerals Regulation (EU) 2017/821.
Rather than limiting the scope of the regulation to the Democratic Republic of Congo (DRC), the expanded EU Regulation is now concerned with minerals sourced from Conflict-Affected and High-Risk Areas (CAHRAs) anywhere in the world.
As per Article 2f of the regulation: “‘conflict-affected and high-risk areas’ means areas in a state of armed conflict or fragile post-conflict as well as areas witnessing weak or non-existent governance and security, such as failed states, and widespread and systematic violations of international law, including human rights abuses.” This means that CAHRAs are not limited to nation-states and also can be sub-national.
On December 17, 2020, the European Commission Directorate General for Trade (DG TRADE) published the indicative, non-exhaustive and regularly updated list of CAHRAs, which can be found here.
Effective January 1, 2021, affected companies are expected to identify, manage and report on risks involved in sourcing Tin, Tungsten, Tantalum, and Gold (3TG) in their supply chain. The regulation requires EU companies in the supply chain to ensure they obtain these minerals from responsible and conflict-free sources by avoiding the export of 3TG minerals from the regions included in the CAHRAs list.